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Dollars For Video Downloads Set To Rise Significantly: Study

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Consumer spending on video downloads will rise to $4 billion a year in 2011 from the current $111 million spent annually, according to a study by Adams Media Research. Adams predicts that the growth will be fueled by increased broadband penetration and the introduction of devices such as Apple TV, which allows users to watch PC downloads on TV. The market researcher is already forecasting huge gains this year for video download sales. By the end of 2007, Adams Media is predicting sales totaling $472 million, then rising to $1.2 billion in 2008, $2 billion in 2009, $3.1 billion in 2010, then hit $4.1 billion in 2011. It also foresees advertiser spending on internet video streams to PCs and TVs approaching $1.7 billion by 2011.
While the Adams report expects downloads to remain the biggest revenue generator for content owners, advertising support will be nearly as pivotal. By 2011, the report suggests that ad spending on internet video streams to PCs and TVs will approach $1.7 billion. Release